The U.S.economy remains subject to frequent boom and bust cycles.Throughout U.S.history,policymakers after the Great Depression often
A) raise or lower taxes and spending to adjust aggregate demand and thereby smooth the ?business cycle.
B) take a hands-off approach to the business cycle.
C) consult with world organizations on how to address cyclic fluctuations.
D) close economies to international trade.

Question

Quizplus · Accepted Answer

Policymakers in the US have often used fiscal policy tools such as adjusting taxes and government spending to influence aggregate demand and stabilize the economy during boom and bust cycles. This approach is aimed at smoothing out the business cycle and reducing the severity of economic fluctuations.

The USEconomy Remains Subject to Frequent Boom and Bust Cycles